New Labour Codes Explained: Timely Wages, Higher Basic Pay, Health Check-ups & Key Changes for Workers and Employers

The government has officially notified four new labour codes aimed at creating a uniform wage and social security system for workers across India. These codes — Code on Wages, Industrial Relations Code, Code on Social Security, and Occupational Safety, Health and Working Conditions (OSH) Code — promise timely wages, equal pay, better safety, and wider social security coverage.

Here are the 12 important changes that workers and employers need to know:

1. New Wage Structure

Wages will include basic pay, dearness allowance and retaining allowance.
Deductions cannot exceed 50% of the total wage, which means a higher basic pay but a lower take-home salary. Social security benefits like PF, gratuity and maternity benefits will be calculated on a larger wage portion.

2. National Floor Wage

A floor wage will be set by the Central government. No state can fix minimum wages lower than this.
Different regions may have different floor wage levels based on living costs.

3. Minimum Wage for All Workers

Every worker — whether in organised or unorganised sector — must get at least the government-notified minimum wage.
This helps daily wagers, casual workers and migrant labourers.

4. Timely Payment of Wages

Employers must follow strict timelines:

• Daily-wage workers — end of shift
• Weekly — before weekly off
• Fortnightly — within 2 days
• Monthly — within 7 days
  Employees who resign or are terminated must be paid within 2 working days.

5. Working Hours

Daily working hours may range between 8 to 12 hours, but weekly limit stays 48 hours.
Rules may allow 4-day workweeks if weekly hours remain within the limit.

6. Higher Overtime Pay

Any work beyond normal hours must be paid at double the regular wage rate.

7. Gratuity for Fixed-Term Employees

Fixed-term employees will now get gratuity after 1 year instead of 5 years.
They will have benefits similar to permanent workers.

8. Social Security for Gig & Platform Workers

EPFO rules will now apply to all establishments with 20 or more workers.
For the first time, gig and platform workers will get social security, funded partly by companies (1–2% of annual turnover).

9. Mandatory Wage Slip & Appointment Letter

All workers must get wage slips electronically or on paper.
Every employee must receive an appointment letter, helping contract and daily workers prove employment.

10. No Gender Discrimination & Night Shifts for Women

Equal pay for equal work becomes compulsory.
Women can work night shifts if they consent and safety arrangements are provided.

11. Free Annual Health Check-ups

Employers must offer free yearly health check-ups to all workers under the OSH Code.

12. Safety Committees

Factories with 500+ workers, construction sites with 250+ workers, and mines with 100+ workers must form safety committees with equal representation from workers and employers.